164 cooperative societies in Kerala unable to release depositors’ money

Thiruvananthapuram: As many as 164 cooperative societies in the State are not in a position to return the depositors’ money, like the case of Karuvannur bank.

Thrissur Karalam native woman named Philomena aged 70, had died two days ago, deprived of money for advance medical treatment, despite having a Rs 30 lakh deposit with Karuvannur Cooperative bank.

Minister for Cooperation V N Vasavan explained in the Assembly last day that there are 164 cooperative societies which are not able to return the depositors’ money even after the deposit term has ended.

Most such societies are in the Thiruvananthapuram district – 37 of them, including Kandala Service Cooperative bank where Rs 100 crore misappropriation was found.

The numbers in other districts go like Kottayam 22, Pathanamthitta 15, Alappuzha 15, Kollam 12, Malappuram 12, Thrissur 11, Kannur 11, Ernakulam 8, Kozhikode 7, Palakkad 5, Idukki 4, Kasaragod 3 and Wayanad 2.

Guarantee for deposits in the Cooperative sector: CM

Hardly 10 days since Chief Minister Pinarayi Vijayan assured a guarantee for deposits with cooperative sector institutions in the Assembly, a 70-year-old woman from Karalam, Thrissur, died deprived of advanced medical treatment as she could not get back her deposits with Karuvannur Cooperative bank.

On 18 th of this month, the Chief Minister in response to the demand by the Opposition leader made the assurance during the discussion on demands for financial grants by the department of Cooperation.

Minister for Cooperation and Registration V N Vasavan declared in the house on the same day that a project is on the anvil under the deposits guarantee scheme to ensure the safety of deposits made with Cooperative banks.

Opposition leader V D Satheeshan had pointed out that the depositors have been waiting for years together without getting back their money deposited with many cooperative banks in the State, not just Karuvannur.

However, the CM, interrupting Minister Vasavan’s reply, stated that Karuvannur is an isolated case and that such problems are rare.

Satheeshan, demanding the Government to assure guarantee for the Cooperative sector deposits, said, problems and discrepancies do exist in the banks led by both parties without political differences.

Even then, the CM maintained that there are only minor issues and stated the Cooperation department would take strong actions to resolve them.

Promise on increasing guarantee to Rs 5 lakh remain unfulfilled

Though the State Department of Cooperation had earlier assured that the guarantee for the liquidated deposits with the Cooperative societies would be raised to Rs 5 lakh, it has not been effected yet.

The guarantee remains to be Rs 2 lakh as of now and it is provided based on the report from the liquidator.

It is when the promise of hiking the guarantee to Rs 5 lakh still remains unfulfilled, that the CM said all deposits would be guaranteed, and Minister Vasavan announced that a project is being prepared under the deposit guarantee scheme.

The incidents betraying the public trust in the cooperative sector have been happening even as the State plans to bring in legislative amendments to utilise the funds with the Cooperative sector for the development of basic amenities in Kerala.

(With inputs from Shiller Stephen)